If you are struggling with credit card debt, you are not alone.
While being able to earn rewards from a credit card can be very beneficial, if you’re carrying a balance and paying high-interest rates all of those savings will be for nothing.
There are plenty of ways for you to pay off credit card debt, but not all are created equal.
Here are three steps that will help you pay off your credit card debts.
Always pay on time
Late payment of your credit card bill presents a myriad of financial issues. Not only will you be hit with late charges, but you will also eventually owe extra interest.
If you are behind after 30, 60, 90 days, it will damage your credit score.
Do a balance transfer
One smart way to get out of debt is to complete a balance transfer. You can transfer debt from high-interest credit card(s) to a balance transfer credit card that offers no interest for almost two years.
Imagine getting zero percent interest on a balance transfer or a big purchase. You could dramatically change your financial picture.
If you want to kick high-interest credit card debt to the curb, transferring your high-interest debt to a zero-interest card could save you hundreds of dollars in interest!
Consolidate debt with a personal loan
Personal loans may be a good alternative to balance transfers if you have a significant amount of debt. If you have debts spread across several credit cards, you may wish to consolidate them into a personal loan.
Depending on your credit score, you may be able to obtain a loan amount that will cover the entire balance.
The purpose of a personal loan is to provide you with a fixed amount of money over a fixed time period at a fixed interest rate.
It is rare for a personal loan to offer 0% interest, but the interest rates are often lower than that of keeping a balance on your existing credit card.
